The Blue Valley School District figures it will save $3.4 million in interest payments after refunding 10-year-old bonds.

The school board this week issued $28.8 million in general obligation refunding bonds to secure a lower interest rate on bonds originally issued in 2005.

The district said 11 institutions bid on the bonds and that the winner — Fifth Third Securities Inc. — offered an interest rate of 2.105 percent. The district said it was able to secure the rate in part because Standard & Poor’s Financial Services earlier this year upgraded the school district to a credit rating of AA+.